Nasdaq Requires Close Examination 21/12/2023

Positive trades took charge of the Nasdaq index in the early stages of the American trading session, nearing the initial target of 16,880 and reaching its peak at 16,863.

From a technical standpoint, the upward trend remains intact, drawing support from the positive momentum generated by the simple moving averages, which persist in propelling the price from below. Conversely, the Stochastic indicator presents negative signals.

Given the conflicting technical signals, a cautious approach is favored, with a preference for monitoring the indicator’s behavior to address potential scenarios:

1. To validate the continuation of the official upward trend, the price needs to establish stability above the resistance level of 16,820. This would facilitate the upward journey towards 16,990 and subsequently 17,120, representing the official target.
2. A dip below 16,500 could usher the index into a downward trend, with its automatic target situated around 16,370.

Risk Advisory: The risks are elevated and may not align proportionally with the anticipated return.

Cautionary Note: Today, exercise heightened caution as we anticipate the release of high-impact economic data from the American economy—the “final reading of gross domestic product” for the quarter. Expect increased price fluctuation during the news release.

Geopolitical Warning: The current risk level is high due to ongoing geopolitical tensions, contributing to the potential for heightened price volatility. Proceed with caution.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 16500	R1: 16820
S2: 16370	R2: 16990
S3: 16190	R3: 17130